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STANDARD OPERATING PROCEDURE FOR PROSECUTION IN CASES OF TDS/ TCS DEFAULT.
Two categories of cases for prosecution in TDS related offences:
LIST A - MANDATORY PROSECUTION :-TDS of more than Rs. 1,00,000 deducted but not deposited
before due date or Late payment Interest had not been paid completely /not at all paid:- Shall Mandatorily be
processed for prosecution + recovery
LIST B DISCRETIONARY PROSECUTION: TDS of between Rs. 25,000/- to 1, 00,000/- deducted but not
deposited before due date: - May be processed for prosecution depending upon facts and circumstances of the
cases.
CPC-TDS/TRACES will generate lists of prosecutable cases in accordance with the criteria laid down by
the CBDT.
In cases of default in furnishing the quarterly TDS statement, CPC-TDS shall generate the list of such nonfilers within one month from due date and communicate to the AO(TDS) for issue of notice and further
pursuit.
PROCEDURE FOR LAUNCHING PROSECUTION
1. identification of potential cases for prosecution by the CPC TDS
2. Maintenance of Prosecution Register in FORM C BY CPC TDS
3. Reporting Of Cases By CPC TDS TO CIT (TDS)
4. Maintenance of Prosecution Register in FORM D BY CIT (TDS)
5. Collection of following information AO ( TDS):
Accounts of the deductor for the relevant year showing late payments.
Copies of the intimations showing late payment interest for all the quarters of the relevant
assessment year, if it is available.
AO(TDS) may also collect other details that may help the CIT(TDS) like:
(a) whether the default was only in one year and no defaults took place later,
(b) whether the deductor has himself rectified the mistake and deposited the tax along
with interest prior to issue of notice by the department,
(c) whether the same offence has been compounded earlier and if yes, how many time etc.
6. ISSUE OF SHOW CAUSE NOTICE :The AO(TDS) shall issue show cause notices to the person
responsible for deduction (directors/principal officers/partners/members/ karta), within 45 days of receipt of
the list of prosecutable cases from CPC-TDS
7. REPLY TO SHOW CAUSE NOTICE: person responsible for deduction (directors/principal
officers/partners/members/ karta) should furnish reply within 30 days of the issue of the show cause notice.
8. EXAMINATION OF REPLY BY AO (TDS): - The AO (TDS) shall examine the reasons/reply for noncompliance and will prepare the proposal in Form F and send it to the CIT (TDS) . The Form F will
indicate inter alia, the following:
(a) The facts indicating the commission of offence.
(b) Chronology of events, primary & secondary evidences to establish the offence.
(c) Present stage of the proceedings relating to the commission of offence.
276B
Within 60
days
of
receipt of
information
from
the
AO(TDS)
Within 30 AO(TDS)
having
days
of jurisdiction.
receiving
approval u/s
279(1)
276BB
-do-
-do-
-do-
-do-
TAG/REPLACE A CHALLAN :
Tag/Replace challan functionality has been provided to the AO TDS to enable him to tag the challans
against the uploaded demands.
On tagging of demand against a challan(s), the available balance in the OLTAS for that challan(s) gets